Foresight Group Holdings Ltd. · LSE:FSG
Foresight — Investor Presentation (July 2019)
41 slides from Foresight's investor presentation, July 2019
Slide 1: FP Foresight Global Real Infrastructure Fund (GRIF) Investor Presentation
FP Foresight Global Real Infrastructure Fund (GRIF) Investor Presentation July 2019
Slide 2: Important Information
Important Information This financial promotion is issued and approved by Foresight Group LLP, which is authorised and regulated by the Financial Conduct Authority (FCA). Foresight Group LLP is the investment manager of the FP Foresight Global Real Infrastructure Fund (GRIF) and the Authorised Corpor
Slide 3: Contents
Contents 1. Foresight Group Overview 2. Investment Philosophy: Real Infrastructure 3. Investment Strategy and Process 4. The Portfolio 3
Slide 4: Introducing Foresight Group
Introducing Foresight Group Foresight Group is a global infrastructure and renewable energy investment manager with £4bn Assets Under Management. 35 year £4.0bn 10 offices investment assets under track record management 215 staff globally 90+ 28 1.6GW+ investment institutional renewable energy profe
Slide 5: Foresight Capital Management
Foresight Capital Management Foresight launched an income fund in December 2017 to address the real infrastructure gap in the OEIC market. The FP Foresight UK Infrastructure Income Fund UK Fund Overview Fund Flyer FP Foresight UK Infrastructure Income Fund Target Investment Company Holding TRIG HICL
Slide 6: FP Foresight UK Infrastructure Income Fund (FIIF) vs FTSE All-Share
FP Foresight UK Infrastructure Income Fund (FIIF) vs FTSE All-Share Cumulative Total Return1 % 25 20 15 10 5 0 -5 -10 Dec/2017 Mar/2018 Jun/2018 Sep/2018 Dec/2018 Mar/2019 Jun/2019 FP Foresight UK Infrastructure Income Fund FTSE All-Share Index One Year Sharpe CumulativeTotal DT Risk 30 Day Vol 90 D
Slide 7: Contents
Contents 1. Foresight Group Overview 2. Investment Philosophy: Real Infrastructure 3. Investment Strategy and Process 4. The Portfolio 7
Slide 8: The Investment Team
The Investment Team The fund is managed by a team of infrastructure investment specialists and material investment decisions are approved by the fund’s investment committee. Fund Managers Investment Committee Nick Scullion Mark Brennan Carly Magee David Hughes Bernard Fairman Nigel Aitchison Philip
Slide 9: Five Key Reasons to Invest in the FP Foresight Global Real Infrastructure Fund
Five Key Reasons to Invest in the FP Foresight Global Real Infrastructure Fund The Fund is actively managed by the award winning Foresight Capital Management team and invests in the publicly traded shares of companies that own or operate real infrastructure or renewable energy assets anywhere in the
Slide 10: Why Global Real Infrastructure for Diversification and Attractive Risk Adjusted Returns?
Why Global Real Infrastructure for Diversification and Attractive Risk Adjusted Returns? Infrastructure asset owning companies around the world are well placed to deliver attractive returns to investors as they provide essential services that allow the global economy to function. Further, they are w
Slide 11: FP Foresight Global Real Infra Fund
FP Foresight Global Real Infra Fund Investment objective: The fund aims to grow, over any 5 year period, by more than 3% per annum above the rate of UK inflation (as measured by the UK Consumer Prices Index). There is no guarantee that the fund will achieve a positive return over this, or any other,
Slide 12: FP Foresight Global Real Infrastructure Fund
FP Foresight Global Real Infrastructure Fund ▪ Targeting attractive risk adjusted returns by investing in a global portfolio of infrastructure and Strategy Objective renewable asset owning investment companies. ▪ The fund aims to grow, over any 5 year period, by more than 3% per annum above the rate
Slide 13: Infrastructure characteristics
Infrastructure characteristics Infrastructure are attractive asset classes as they are characterised by stable and predictable demand, high barriers to entry and long term contracted revenue streams. Infrastructure Characteristics: Stable and predictable Infrastructure assets tend to have constant d
Slide 14: 'Real' Vs 'Fake' Infrastructure
‘Real’ Vs ‘Fake’ Infrastructure ‘Fake’ infrastructure is defined as assets or companies analogous to the infrastructure sector, providing goods and services for example, but that may not provide investors with the fundamental characteristics of the underlying project-level cash flows. ▪ ‘Fake’ infra
Slide 15: Risks to Consider
Risks to Consider For the full set of risk warnings, please refer to the fund prospectus which can be found on either the Foresight Group and FundRock Partners website. ▪ Infrastructure companies may be subject to a variety of factors that may adversely affect their business or operations, including
Slide 16: Contents
Contents 1. Foresight Group Overview 2. Investment Philosophy: Real Infrastructure 3. Investment Strategy and Process 4. The Portfolio 16
Slide 17: FP Foresight Global Real Infra Fund (GRIF)
FP Foresight Global Real Infra Fund (GRIF) A target screening exercise identified 91 appropriate listed renewable and infrastructure real asset owning companies from a global universe of 5,700 companies. Infrastructure All listed companies that are involved in renewable energy and infrastructure wer
Slide 18: The Investment Universe
The Investment Universe The 91 listed renewable and infrastructure investment companies have a combined market cap of £198bn and represent an excellent access point into ‘real’ infrastructure. Cumulative Market Capitalisation of Global Listed Renewable and Cumulative Number of Global Listed Renewabl
Slide 19: Sustainable Investment Strategies UN Global Compact
Sustainable Investment Strategies UN Global Compact By incorporating Global Compact principles into strategies and establishing a culture of integrity, companies are not only upholding their basic responsibilities to people and planet, but also setting the stage for long-term success. 1. Businesses
Slide 20: Contents
Contents 1. Foresight Group Overview 2. Investment Philosophy: Real Infrastructure 3. Investment Strategy and Process 4. The Portfolio 20
Slide 21: June 2019 Performance
June 2019 Performance Cumulative Total Return1 % 3.5 3 2.5 2 1.5 1 0.5 0 Jun/2019 FP Foresight UK Infrastructure Income Fund 20 Day Vol 90 Day Vol 180 Day Vol Beta One Year Sharpe Ratio Cumulative Total Return KIID Rating3 FP Foresight Global Real Infrastructure Fund 6.58 PENDING PENDING 0.60 PENDIN
Slide 22: Portfolio Geographic Breakdown
Portfolio Geographic Breakdown Portfolio by company domicile Portfolio by asset location 4.75% 3.8% 1.00% 4.9% 5.50% 5.50% 27.00% 11.8% 31.6% 6.00% 9.50% 15.6% 10.75% 25.50% 31.3% CANADA UNITED KINGDOM NORWAY North America Asia UNITED STATES SINGAPORE GERMANY Europe South America NEW ZEALAND IRELAND
Slide 23: Portfolio Sectors and Assets
Portfolio Sectors and Assets Portfolio by sector Underlying asset split 5.50% 2.2% 6.50% 3.2% 2.5% 1.1% 3.8% 20.3% 4.2% 14.50% 5.8% 46.30% 8.6% 15.2% 28.30% 12.2% 14.0% Renewables Government Property Wind Other Core Infrastructure Cash Transmission and gas distribution Waste and Water Medical Proper
Slide 24: Global Real Infrastructure Fund
Global Real Infrastructure Fund The Fund’s diversified approach is highlighted in its top 10 holdings which show seven different listing locations and encompass three different infrastructure asset sub-sectors. Company Listing Location Sector Target Allocation1 Brookfield Infrastructure Partners Can
Slide 25: Case Study: Portfolio Company Profile Brookfield Infrastructure Partners
Case Study: Portfolio Company Profile Brookfield Infrastructure Partners Example Portfolio Company and Assets - Brookfield Infrastructure Partners 25
Slide 26: Case Study: Portfolio Company Profile Healthcare Trust of America (HTA)
Case Study: Portfolio Company Profile Healthcare Trust of America (HTA) HTA focuses on acquiring medical office buildings that are core-critical to the delivery of healthcare and are located on campuses of hospitals, around university and academic medical centre campuses. Commentary1: ▪ HTA’s invest
Slide 27: Case Study: Asset Analysis Isagen
Case Study: Asset Analysis Isagen Acquired in 2016 from the Colombian government, Isagen owns and operates a renewable energy portfolio consisting of 3,032 MW of hydroelectric generating capacity and a 3,800 MW development portfolio in Colombia. Commentary1: ▪ Market leader with a premier generation
Slide 28: Case Study: Asset Analysis Phoenix, Az
Case Study: Asset Analysis Phoenix, Az HTA invests in medical office buildings that are core-critical and a key part of the integrated delivery of healthcare. To ensure these properties will increase in value over time, these properties are in community-core locations. Commentary1: ▪ Phoenix is one
Slide 29: Case Study: Asset Analysis Svartsengi geothermal plant
Case Study: Asset Analysis Svartsengi geothermal plant In 2017, Innergex meaningfully diversified their asset portfolio in terms of geography and energy source by acquiring two Icelandic geothermal power facilities. Commentary1: ▪ The Svartsengi geothermal power plant is located in the municipality
Slide 30: Case Study: Asset Analysis Ukrainian Solar Power
Case Study: Asset Analysis Ukrainian Solar Power Scatec Solar entered the Ukraine market in 2017 and is currently developing a significant project portfolio in the country with 77 MW under construction. Commentary1: ▪ Ukraine’s target is to generate 11% of its energy from renewable sources by 2020 i
Slide 31: Case Study: Asset Analysis Solar power, South Africa
Case Study: Asset Analysis Solar power, South Africa Scatec Solar entered the South African market in 2010. Operating four solar power plants including 190 MW in operation and 258 MW under construction Scatec Solar is a leading solar player in the country. Commentary1: ▪ The Renewable Energy Indepen
Slide 32: Case Study: Asset Analysis FEMA storage facility
Case Study: Asset Analysis FEMA storage facility Easterly Government Properties focus on the acquisition, development and management of class A commercial properties that are leased to US government agencies that serve essential US government functions. Commentary1: ▪ Built in 2018, this 210,373 squ
Slide 33: Case Study: Asset Analysis Indian Natural Gas Transmission
Case Study: Asset Analysis Indian Natural Gas Transmission Brookfield Infrastructure Partners L.P. is one of the largest owners and operators of critical and diverse global infrastructure networks which facilitate the movement and storage of energy, water, freight, passengers and data. Commentary1:
Slide 34: Case Study: Asset Analysis Senoko Waste-to-Energy Plant
Case Study: Asset Analysis Senoko Waste-to-Energy Plant Keppel Infrastructure Trust (KIT) aims to provide investment into infrastructure assets located in jurisdictions with well-developed legal frameworks that support infrastructure investment. Commentary1: ▪ Fulfilling a concession of 2,310 tonnes
Slide 35: ESG Case Study Scatec – UN Global Compact
ESG Case Study Scatec – UN Global Compact In June 2018, Scatec Solar became a signatory of the UN Global Compact and affirmed its support to the Ten Principles of the Global Compact on human rights, labour, environment and anti-corruption. Commentary: ▪ Scatec are committed to making the UN Global C
Slide 36: ESG Case Study Scatec – UN Global Compact
ESG Case Study Scatec – UN Global Compact Scatec’s core mission is do deliver competitive and sustainable solar energy globally, to protect the environment and to improve quality of life though innovative integration of reliable technology. Commentary1: ▪ Scatec’s material sustainability priorities
Slide 37: ESG Case Study Scatec – UN Global Compact
ESG Case Study Scatec – UN Global Compact Respecting and supporting human rights remains one of the most challenging areas of corporate sustainability. Businesses now realise their legal, moral and commercial need to support human rights within their activities and business relationships. Human Righ
Slide 38: ESG Case Study Scatec – UN Global Compact
ESG Case Study Scatec – UN Global Compact Decent working conditions are far from assured in today’s global business community. By promoting decent work and inclusive employment opportunities, business also plays a key role in advancing societal priorities. Human Rights Checklist1 Measure2 Providing
Slide 39: ESG Case Study Scatec – UN Global Compact
ESG Case Study Scatec – UN Global Compact The Global Compact asks businesses to address environmental risks and opportunities and have major sustainable initiatives in the areas of climate, water and food. The Compact’s signatories are preparing for a more sustainable future and becoming part of the
Slide 40: ESG Case Study Scatec – UN Global Compact
ESG Case Study Scatec – UN Global Compact Corruption represents a major hinderance to advancing societies, with a disproportionate impact on poor communities. Corruption raises transaction costs, undermines fair competition, distorts development priorities, and impedes long-term investment. Companie
Slide 41: FP Foresight Global Real Infrastructure Fund Key Features
FP Foresight Global Real Infrastructure Fund Key Features Fund Name: FP Foresight Global Real Infrastructure Fund Fund Structure: A sub-fund of FP Foresight OEIC, a UK open-ended investment company (“OEIC”) Regulatory Status: FCA Authorised UCITS IA Sector: Global Unit Type: Income & Accumulation Cu